REG - Wellnex Life Limited - Q4 FY25 Quarterly Report and Appendix 4C
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RNS Number : 3645T Wellnex Life Limited 31 July 2025
ASX/AIM Announcement
31 July 2025
Wellnex Life Limited (ASX/AIM:WNX)
Q4 FY25 Quarterly Report and Appendix 4C (unaudited)
Highlights
· Cash receipts of $6.5 million for the quarter in line with Q3 FY
25 (PCP) (Q3 FY25: $6.6 million).
· Positive net cash flow from operations of $0.98 million (Q3 FY25:
$0.04 million).
· Sales for Q4 FY25 were $6.6 million, an increase of 22% compared
to PCP (Q3 FY25: $5.4 million).
o Brand sales up 19.5% to $4.9 million
o IP Licensing up 30.8% to $1.7 million
· Internal review underway to maximise revenue, margins and
operational profitability to build on the strong end to FY25.
· Additional debt funding of $2.825 million secured, to support
margin enhancing initiatives and growth in the business.
Wellnex Life Limited (ASX/AIM:WNX) ("Wellnex Life" or the "Company") is
pleased to provide the following operational update along with its Appendix 4C
for the quarter ended 30 June 2025 ("Q4 FY25").
Wellnex Life for Q4 FY25 recorded sales of $6.6 million an increase of 22.2%
compared to the PCP (Q3 FY25: $5.4 million), with brand sales increasing by
19.5% to $4.9 million and IP Licensing Sales increasing by 30.8% to $1.7
million.
Revenue overview
Q4 FY25 Q3 FY25 %
Brands $4.9 million $4.1 million 19.5%
IP Licensing $1.7 million $1.3 million 30.8%
Total $6.6 million $5.4 million 22.2%
The Company recorded cash receipts for Q4 FY25 of $6.5 million, in line with
the previous quarter, with the Company recording a positive cash flow from
operations of $0.98 million, compared to cash flow from operations in the PCP
of $0.04 million.
Wellnex Life during the quarter had a cash outflow for marketing and
advertising expenditure of $0.60 million, in line with the PCP of $0.59
million.
Product manufacturing and operating costs decreased to $3.2 million from $4.6
million for the PCP due to lower inventory purchases and a reduction in
operating expenses. An increase in corporate costs to $0.5 million in Q4 FY25
was as a result of the UK IPO, which compares to $0.30 million in the previous
quarter.
Repayment of borrowings of $9.2 million relates to the redemption of the
convertible notes and the payments associated with the Company's trade and
debtor facility.
Transaction costs in Q4 FY25 were $0.9 million, comprising the completion of
the listing on the AIM market of the London Stock Exchange and the associated
capital raising.
Payments made to related parties as outlined under section 6.1 of the Appendix
4C relate to the customary director fees and salaries paid during the quarter.
Financial Year 2025
Wellnex Life throughout FY25 has seen continuous improvement in gross margins
and operational profitability, with a more disciplined approach to trade
investment and capital expenditure with gross margins in 2H FY25 increasing to
37%, or $4.4 million, compared to a 23% gross margin for 1H FY25 of $2.7
million.
Q1 FY25 Q2 FY25 1H FY25 Q3 FY25 Q4 FY25 2H FY25 Total
Revenue $4.4 million $7.5 million $11.9 million $5.4 million $6.6 million $12 million $23.9 million
Gross Margin $1.1 million $1.6 million $2.7 million $1.9 million $2.5 million $4.4 million $7.1 million
% 25% 21.3% 22.6% 35.2% 37.9% 36.6% 29.7%
Q4 FY25
Wellnex Life during the quarter commenced an internal review of its operations
to identify key brand assets to focus on and invest in, over the medium to
long term, with the objective of maximising revenue, margins and operational
profitability. As part of this review Wellnex Life divested the assets of The
Iron Company which completed on 30 June 2025. The review process will continue
in FY26 to build on the positive momentum created in 2H FY25.
During the period under review, the Company implemented a number of
initiatives with the aim of enhancing margins going forward.
In Q4 FY25 the Company took advantage of the opportunity to purchase an
extended supply of stock in respect of one of its leading brands, in the
amount of $1.2 million, targeting a saving of in excess of 25% on the cost
to produce the product. This should increase the margins for the Company as
product is sold over the medium term.
In connection with the acquisition of Pain Away, Homart Pharmaceuticals
("Homart") purchased raw ingredients from the previous vendor on behalf of
Wellnex Life, to assist the Company's then working capital constraints, as
announced on 28 August 2024. At that time, it was agreed that if Homart did
not become a supplier to the Company using those raw ingredients, the Company
would repurchase the raw ingredients and use them with their current or other
suppliers.
The Company has now made the decision to repurchase the raw ingredients from
Homart to supply the current Company's manufacturing partner, with the
intention of enhancing margins compared to a finished services arrangement.
In order to fund these initiatives, support the continued growth in the
business, and to provide greater financial flexibility alongside its ScotPac
invoice discounting facilities, the Group has entered into a loan facility via
Reach Wholesale ("Reach") for the amount of $2.825 million (the "Facility").
The Facility, which is secured over the assets of the Group's key
subsidiaries, is for a 24-month term at an interest rate of 14% for the term
of the Facility. The coupon before arrangement and administration fees payable
to Reach is broadly similar to the Group's existing financing facility
arrangements.
In addition, Reach has indicated they would be willing to support the Company
by entering into an additional Facility if the Company required them to do so,
to ensure the Company has the maximum flexibility available to accelerate the
growth in its operations. The Company expects to progress this additional
financing in the near term.
In conjunction with the Facility, the Company has reduced the maximum
commitment with ScotPac to $3.8m (from $5.3 million), of which c.$1.1 million
currently remains available post the reduction in the facility.
Jeffrey Yeh (Non-Executive Director of Wellnex and director of Homart) is
subscribing in the Facility in the amount of $825,000.
This ASX/AIM announcement has been authorised by the Board of Wellnex Life
Limited (ASX/AIM:WNX).
For further information, please contact:
Wellnex Life Limited (ASX/AIM:WNX)
Reach Markets
George Karafotias or Zack
Bozinovski T: 1300 805
9419
Joint Chief Executive
Officers
E: IR@reachmarkets.com.au
P: +61 3 8399 9419
E: george.k@Wellnexlife.com.au (mailto:george.k@Wellnexlife.com.au)
UK Investors
Strand Hanson (Financial & Nominated Advisor)
James Harris / Richard Johnson / Robert Collins Tel:
+44 (0) 20 7409 3494
Orana Corporate LLP (Joint Broker)
swykeham@oranacorp.com (mailto:swykeham@oranacorp.com)
Sebastian Wykeham
S.P. Angel Corporate Finance LLP (Joint Broker) Tel: +44
(0)20 3470 0470
David Hignell / Vadim Alexandre
About Wellnex Life
Wellnex Life Limited (ASX/AIM:WNX) is a consumer healthcare business with a
track record for developing, licensing, and marketing registered products and
brands to customers in the growing healthcare market segment. Since listing on
ASX in 2021, Wellnex Life has successfully launched a host of brands and
products now ranged in major retailers in the healthcare market space,
pharmacies and supermarkets. Its distribution arrangements have seen Wellnex
Life secure significant licensing arrangements with major pharmaceutical
companies in Australia and globally that have given the Company's registered
products a distribution channel with a steadily increasing global geographic
footprint.
In December 2023, Wellnex Life acquired leading Australian topical pain relief
brand Pain Away. Its addition to Wellnex Life's product offering both
compliments and accelerates the potential growth of the company's business
operations. This transformational acquisition gives added impetus to Wellnex
Life's financial growth and scale and reinforces its place as a major and
respected participant in the growing healthcare market, both in Australia and
overseas.
To learn more, please visit: www.Wellnex Lifelife.com.au/
(https://wellnexlife.com.au/)
The information contained within this announcement is deemed by the Company to
constitute inside information pursuant to article 7 of EU Regulation 596/2014
as it forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 as amended.
Appendix 4C
Quarterly cash flow report for entities
subject to Listing Rule 4.7B
Name of entity
WELLNEX LIFE LIMITED
ABN Quarter ended ("current quarter")
77 150 759 363 30 June 2025
Consolidated statement of cash flows Current quarter $A'000 Year to date
(12 months)
$A'000
1. Cash flows from operating activities 6,503 22,185
1.1 Receipts from customers
1.2 Payments for (67) (405)
(a) research and development
(b) product manufacturing and operating costs (3,231) (14,249)
(c) advertising and marketing (601) (2,508)
(d) leased assets
(e) staff costs (993) (3,742)
(f) administration and corporate costs (492) (1,448)
1.3 Dividends received (see note 3) - -
1.4 Interest received 0 0
1.5 Interest and other costs of finance paid (125) (607)
1.6 Income taxes paid - -
1.7 Government grants and tax incentives - -
1.8 Other (GST refund/(paid)) (15) (56)
1.9 Other (costs for CBDG administration) - 25
1.9 Net cash from / (used in) operating activities 979 (804)
*Product manufacturing of circa $1.5 million for the launch of Pharmacy Own
and the launch of Nighty Night and new products for Wakey Wakey
**Circa one off marketing expenses of $400,000 for the preparation for the
launch of new Wakey Wakey lines and Nighty Night
2. Cash flows from investing activities - -
2.1 Payments to acquire or for:
(a) entities
(b) businesses (239) (8,149)
(c) property, plant and equipment - -
(d) investments - -
(e) intellectual property - (7)
(f) other non-current assets - -
2.2 Proceeds from disposal of: - -
(a) entities
(b) businesses - -
(c) property, plant and equipment - -
(d) investments - -
(e) intellectual property - -
(f) other non-current assets - -
2.3 Loan repayment from other entity - -
2.4 Dividends received (see note 3) - -
2.5 Other (cash acquired from CBDG Administration) - (136)
2.6 Net cash from / (used in) investing activities (239) (8,292)
3. Cash flows from financing activities 953 15,532
3.1 Proceeds from issues of equity securities (excluding convertible debt
securities)
3.2 Proceeds from issue of convertible debt securities - -
3.3 Proceeds from exercise of options - -
3.4 Transaction costs related to issues of equity securities or convertible debt (915) (3,311)
securities
3.5 Proceeds from borrowings 3,692 16,803
3.6 Repayment of borrowings (9,265) (20,472)
3.7 Transaction costs related to loans and borrowings - -
3.8 Share applications to be refunded - -
3.9 Other (repayment of lease liabilities) - -
3.10 Net cash from / (used in) financing activities (5,535) 8,552
4. Net increase / (decrease) in cash and cash equivalents for the period 5,292 1,040
4.1 Cash and cash equivalents at beginning of period
4.2 Net cash from / (used in) operating activities (item 1.9 above) 979 (804)
4.3 Net cash from / (used in) investing activities (item 2.6 above) (239) (8,292)
4.4 Net cash from / (used in) financing activities (item 3.10 above) (5,535) 8,552
4.5 Effect of movement in exchange rates on cash held - 1
4.6 Cash and cash equivalents at end of period 497 497
5. Reconciliation of cash and cash equivalents Current quarter Previous quarter
at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts
$A'000
$A'000
5.1 Bank balances 497 5,292
5.2 Call deposits - -
5.3 Bank overdrafts - -
5.4 Other (funds held in trust) - -
5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above) 497 5,292
6. Payments to related parties of the entity and their associates Current quarter
$A'000
6.1 Aggregate amount of payments to related parties and their associates included 267
in item 1
6.2 Aggregate amount of payments to related parties and their associates included -
in item 2
Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity
report must include a description of, and an explanation for, such payments.
7. Financing facilities Total facility amount at quarter end Amount drawn at quarter end
Note: the term "facility' includes all forms of financing arrangements available to the entity.
$A'000
$A'000
Add notes as necessary for an understanding of the sources of finance available to the entity.
7.1 Loan facilities 5,300 (2,350)
7.2 Credit standby arrangements - -
7.3 Other (Director's loan) 2,513 (2,525)
7.4 Total financing facilities 7,813 (4,875)
7.5 Unused financing facilities available at quarter end 2,938
7.6 Include in the box below a description of each facility above, including the
lender, interest rate, maturity date and whether it is secured or unsecured.
If any additional financing facilities have been entered into or are proposed
to be entered into after quarter end, include a note providing details of
those facilities as well.
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8. Estimated cash available for future operating activities $A'000
8.1 Net cash from / (used in) operating activities (item 1.9) 929
8.2 Cash and cash equivalents at quarter end (item 4.6) 497
8.3 Unused finance facilities available at quarter end (item 7.5) 2,938
8.4 Total available funding (item 8.2 + item 8.3) 3,435
8.5 Estimated quarters of funding available (item 8.4 divided by item 8.1) N/A
No
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8.6 If item 8.5 is less than 2 quarters, please provide answers to the following
questions:
8.6.1 Does the entity expect that it will continue to have the current
level of net operating cash flows for the time being and, if not, why not?
N/A
8.6.2 Has the entity taken any steps, or does it propose to take any
steps, to raise further cash to fund its operations and, if so, what are those
steps and how likely does it believe that they will be successful?
N/A
8.6.3 Does the entity expect to be able to continue its operations and
to meet its business objectives and, if so, on what basis?
N/A
Note: where item 8.5 is less than 2 quarters, all of questions 8.6.1, 8.6.2
and 8.6.3 above must be answered.
Compliance statement
1 This statement has been prepared in accordance with
accounting standards and policies which comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters
disclosed.
31 Jul
2025
Date:
...................................................................................
The
Board of Directors
Authorised by:
...................................................................................
(Name of body or officer authorising release - see note 4)
Notes
1. This quarterly cash flow report and the accompanying
activity report provide a basis for informing the market about the entity's
activities for the past quarter, how they have been financed and the effect
this has had on its cash position. An entity that wishes to disclose
additional information over and above the minimum required under the Listing
Rules is encouraged to do so.
2. If this quarterly cash flow report has been prepared in
accordance with Australian Accounting Standards, the definitions in, and
provisions of, AASB 107: Statement of Cash Flows apply to this report. If this
quarterly cash flow report has been prepared in accordance with other
accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the
corresponding equivalent standard applies to this report.
3. Dividends received may be classified either as cash flows
from operating activities or cash flows from investing activities, depending
on the accounting policy of the entity.
4. If this report has been authorised for release to the
market by your board of directors, you can insert here: "By the board". If it
has been authorised for release to the market by a committee of your board of
directors, you can insert here: "By the [name of board committee - eg Audit
and Risk Committee]". If it has been authorised for release to the market by a
disclosure committee, you can insert here: "By the Disclosure Committee".
5. If this report has been authorised for release to the
market by your board of directors and you wish to hold yourself out as
complying with recommendation 4.2 of the ASX Corporate Governance Council's
Corporate Governance Principles and Recommendations, the board should have
received a declaration from its CEO and CFO that, in their opinion, the
financial records of the entity have been properly maintained, that this
report complies with the appropriate accounting standards and gives a true and
fair view of the cash flows of the entity, and that their opinion has been
formed on the basis of a sound system of risk management and internal control
which is operating effectively.
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